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  #1  
Old 07-31-2008, 06:46 PM
mary1 mary1 is offline
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Default What is credit crunch?

What is credit crunch? What doest it mean? Please be as specific as possible?
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  #2  
Old 07-31-2008, 06:58 PM
sunshine sunshine is offline
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It means that the economy is in decline. Credit crunch is not a good thing - The banks stop giving loans to everybody and if they give loans the interest rates are high.

This affects consumer spending and shows decline in the real estate market - it is not easy to get a loan with bad credit any more.
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  #3  
Old 08-01-2008, 02:25 PM
heyjude heyjude is offline
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Credit crunch is when the interest rates go up and the banks stop giving loan easy. For example you won't be able to get a mortgage with 0 down payment or with less than 20% down- therefore less people will take credit.
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Old 08-14-2008, 08:24 PM
Canadian Canadian is offline
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There is no need for interest rate to go up in order to have a credit crunch. Right now we have ridiculously low interest rates (well below real inflation) and we have severe credit contraction already. I think that the whole credit crunch thing will be good for the economy as it will lower artificially inflated bubble like the Canadian housing bubble and will give more power to savers and people that actually make money, versus people who buy everything using debt.
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  #5  
Old 08-22-2008, 07:07 PM
bullish bullish is offline
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The credit crunch is over; it is an old news. Now is the time to get back into the market.
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  #6  
Old 08-25-2008, 04:00 PM
Canadian Canadian is offline
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Quote:
Originally Posted by bullish View Post
The credit crunch is over; it is an old news. Now is the time to get back into the market.
Sure, go ahead and buy stocks now. You'll be sorry before the year is over!
The credit crunch is not nearly over. It will be over when all banks/financials clean up their balance sheets and write-off all the bad loans. By this time I suspect there will be a lot less financial companies in existence.
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Old 08-25-2008, 04:04 PM
trent trent is offline
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Quote:
Originally Posted by bullish View Post
The credit crunch is over; it is an old news. Now is the time to get back into the market.
Another "priceless advice" from bullish, or should we call him foolish...
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Old 09-05-2008, 07:20 PM
Zephyr Zephyr is offline
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Quote:
Originally Posted by mary1 View Post
What is credit crunch? What doest it mean? Please be as specific as possible?
Credit crunch is what is now happening in US and what will happen in Canada soon. The banks stop giving loans, they don't give loans to people with bad credit and at the same time the foreclosures and bankruptcies increase every day. The interest rates go up. Basically this is credit crunch - not a pretty picture
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Old 11-06-2008, 10:06 PM
Canadian Canadian is offline
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The credit crench is already happening in Canada, and Canadians are having hard time getting car loans, mortgages, credit cards and personal lines of credit. If you ask me, this is the way it should be. If people start saving and don't buy on credit, in a few years the prices of everything will come down to Earth and everybody will be wealthier, with the exception of the bankers. Bankers having poor earnings and losing business - I can live with that .
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Old 11-10-2008, 09:46 PM
trent trent is offline
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I would love to see greedy bankers suffer, and society being better off as well.
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